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Companhia Siderúrgica Nacional (SID)
NYSE:SID
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Companhia Siderúrgica Nacional
(NYSE:SID)
Rating:49Neutral
Price Target:
$1.50
▲(7.91%Upside)
Companhia Siderúrgica Nacional (SID) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend Yield13.22%
Average Volume (3M)3.52M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-9.84%
EPS Growth-14783.33%
CountryUS
Employees24,924
SectorBasic Materials
Sector Strength63
IndustrySteel
Share Statistics
EPS (TTM)-0.10
Shares Outstanding1,326,094,000
10 Day Avg. Volume3,048,583
30 Day Avg. Volume3,515,023
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.99
Price to Sales (P/S)0.00
P/FCF Ratio-5.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.30Price Target Upside-6.47% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Companhia Siderúrgica Nacional Business Overview & Revenue Model
Company DescriptionCompanhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates in five segments: Steel, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as high, medium, low carbon, micro-alloyed, ultra-low-carbon, and interstitial free slabs; hot-rolled products, including heavy and light-gauge hot-rolled coils and sheets; cold-rolled products comprising cold-rolled coils and sheets; galvanized products; tin mill products that consist of flat-rolled low-carbon steel coils or sheets; and profiles, channels, UPE sections, and steel sleepers for the distribution, packaging, automotive, home appliance, and construction industries. It primarily explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. In addition, the company operates railway and port facilities; produces and sells cement to construction material stores, home centers, concrete producers, construction companies, mortar industries, and cement artifact producers; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. It also exports its products. The company was incorporated in 1941 and is headquartered in São Paulo, Brazil. Companhia Siderúrgica Nacional operates as a subsidiary of Vicunha Aços S.A.
How the Company Makes MoneyCompanhia Siderúrgica Nacional generates revenue through multiple streams. The primary source of income is the production and sale of steel products, including flat and long steel, which are supplied to industries like automotive and construction. The company also profits from its mining operations by extracting and selling iron ore, a crucial raw material for steel production. Additionally, SID has diversified into logistics, providing railway and port services that support its mining and steel activities. Its cement division contributes to earnings by utilizing slag, a byproduct of steel production, to manufacture cement. Lastly, the energy segment helps reduce operational costs and provides additional revenue through the generation and sale of electric power. Strategic partnerships and investments in infrastructure and technology also play a significant role in enhancing the company's profitability.
Companhia Siderúrgica Nacional Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: -19.19%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performances and record achievements in cash holdings, mining, steel, and cement segments, along with significant ESG advancements. However, the call also noted challenges such as the impact of exchange rates on debt, negative cash flow despite operational success, and the strategic decision to withhold dividend distribution. Additionally, there are concerns about market dynamics in the steel sector, particularly related to imports and protectionist measures.Q4-2024 Updates
Positive Updates
Record Cash Holdings
CSN achieved the highest cash holdings in its history, almost reaching BRL 25 billion, enabling better control over the company's leveraging.
Strong Mining Segment Performance
The mining segment confirmed operational excellence, achieving production guidance despite adverse weather, and experienced a 35% price increase leading to an EBITDA margin above 50%.
Steel Segment Recovery
The steel segment saw a 10% increase in sales compared to the previous year, with EBITDA margins reaching 11% for the first time in the year, indicating a recovery trend.
Cement Segment Record Margins
CSN Cement achieved a record EBITDA margin of 33%, the highest since acquiring Lafarge Holcim, outperforming market averages.
ESG Achievements
CSN reported no fatalities, a 63% reduction in lost days, and a 7% reduction in CO2 emissions in the steel mill, bringing them closer to their 2030 goals.
Negative Updates
Exchange Rate Impact on Debt
The leverage increased due to exchange rate variations on dollar-denominated debt, impacting the financial results despite operational improvements.
Negative Cash Flow Despite Strong Operations
Despite strong operational results, CSN experienced a negative cash flow due to financial expenses affected by exchange rate effects and high investment volumes.
Decision to Not Distribute Dividends
CSN decided not to distribute dividends in the first quarter of 2025 to focus on deleveraging, as approved by the Board.
Anticipated Challenges in Steel Market
Concerns were raised about the impact of protectionist measures and unloyal competition from imports, particularly from China, affecting the steel market.
Company Guidance
In the call, CSN reported strong performance for the fourth quarter and full year 2024, highlighting significant metrics such as achieving the highest cash in its history at nearly BRL25 billion. The company emphasized its operational excellence in mining, evidenced by a 35% price increase and an EBITDA margin over 50%. In steel, CSN saw a 10% increase in sales compared to the same period last year, leading to an EBITDA margin of 11% in the fourth quarter. The cement segment reached a record EBITDA margin of 33%, the highest since acquiring Lafarge Holcim. CSN also detailed its commitment to deleveraging, with a semester-end leverage ratio impacted by exchange rate variations but operationally closer to 3.2 times. The company's strategy includes capital recycling and a focus on organic growth, postponing dividend distributions to prioritize deleveraging. CSN's guidance for 2025 includes continued operational improvements and strategic investments to foster growth and maintain financial health.Companhia Siderúrgica Nacional Financial Statement Overview
Summary
Companhia Siderúrgica Nacional exhibits a mixed financial performance with profitability challenges and high leverage. Operational efficiencies exist but are insufficient to counteract the negative net income and declining revenue growth. The significant debt level poses risks, although cash flow generation offers some resilience.Income Statement
The income statement shows a decline in revenue from the previous periods with a negative net income. The gross profit margin for the TTM period is 26.7%, while the net profit margin is -4.9%, indicating a challenging operational environment. EBIT and EBITDA margins are at 9.6% and 17.9% respectively, showing some operational efficiency, but not enough to offset the losses. Continued negative net income highlights profitability issues.42
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 4.14, indicating significant leverage which may pose risks in volatile markets. Stockholders' equity as a percentage of total assets is 13.1%, suggesting moderate financial stability. The return on equity is not calculable due to negative net income, showing a need for improvement in generating shareholder returns.50
Neutral
Cash Flow
Operating cash flow is positive at 8.1 billion, but free cash flow has seen a decline compared to the previous year, indicating pressure on liquidity. The operating cash flow to net income ratio is not meaningful due to negative net income. The company has managed to maintain some cash flow strength despite overall profitability challenges.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.88B | 43.69B | 45.44B | 44.36B | 47.91B | 30.06B |
| Gross Profit | 11.98B | 15.31B | 11.30B | 13.31B | 22.07B | 10.94B |
| EBITDA | 8.04B | 7.28B | 8.58B | 10.07B | 23.08B | 9.69B |
| Net Income | -2.19B | -2.59B | -318.21M | 2.17B | 12.26B | 3.79B |
Balance Sheet | ||||||
| Total Assets | 99.76B | 103.91B | 91.53B | 85.35B | 79.38B | 63.00B |
| Cash, Cash Equivalents and Short-Term Investments | 20.75B | 24.22B | 17.55B | 13.45B | 19.30B | 13.73B |
| Total Debt | 54.12B | 57.75B | 45.59B | 41.61B | 33.12B | 35.80B |
| Total Liabilities | 83.50B | 88.45B | 71.84B | 63.54B | 56.00B | 51.75B |
| Stockholders Equity | 13.08B | 12.27B | 17.50B | 19.49B | 20.31B | 9.91B |
Cash Flow | ||||||
| Free Cash Flow | 2.28B | 3.16B | 2.88B | -3.33B | 13.57B | 7.89B |
| Operating Cash Flow | 8.11B | 8.65B | 7.29B | 2.04B | 16.43B | 9.58B |
| Investing Cash Flow | -1.47B | -1.12B | -4.59B | -11.45B | 447.93M | -1.86B |
| Financing Cash Flow | -1.59B | -103.83M | 1.32B | 4.75B | -8.53B | 1.19B |
Companhia Siderúrgica Nacional Technical Analysis
Negative
1.39
Price Trends
1.56
Negative
1.57
Negative
1.70
Negative
Market Momentum
-0.05
Positive
41.01
Neutral
18.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SID, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.56, and below the 200-day MA of 1.70, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 18.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SID.
Companhia Siderúrgica Nacional Risk Analysis
Companhia Siderúrgica Nacional disclosed 41 risk factors in its most recent earnings report. Companhia Siderúrgica Nacional reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Cement is a perishable product and failure to carefully store and distribute it may result in losses for our cement subsidiary and us. Q4, 2023
Companhia Siderúrgica Nacional Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.67B | 10.12 | 5.86% | 2.95% | -9.33% | -51.03% | |
73 Outperform | $4.57B | 7.02 | 19.79% | ― | -15.93% | 86.43% | |
71 Outperform | $5.60B | 161.20 | 0.88% | 1.44% | -5.64% | -93.26% | |
58 Neutral | $6.04B | 73.52 | -2.75% | 11.71% | -10.20% | -152.18% | |
51 Neutral | $3.67B | ― | -17.57% | ― | -15.00% | -423.14% | |
49 Neutral | $1.80B | ― | -16.28% | 13.22% | -9.84% | -14783.33% | |
44 Neutral | C$953.01M | -6.70 | -13.31% | 2.79% | 17.55% | -32.28% |
* Basic Materials Sector Average
Performance Comparison
SID
Companhia Siderúrgica Nacional
1.39
-0.80
-36.53%
CLF
Cleveland-Cliffs
7.42
-7.97
-51.79%
CMC
Commercial Metals Company
50.02
-2.93
-5.53%
GGB
Gerdau SA
2.87
-0.26
-8.31%
SIM
Grupo Simec SA De CV
27.61
-2.39
-7.97%
TX
Ternium SA
30.75
-2.96
-8.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.